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Question: A Realtor examines the factors that influence the price of a house in Arlington, Massachusetts. H…

by Essaynice Tutors | Sep 9, 2023 | statistics and probability

A Realtor examines the factors that influence the price of a
house in Arlington, Massachusetts. He collects data on recent house
sales (Price) and notes each houseâ€™s square footage (Sqft) as well
as its number of bedrooms (Beds) and number of bathrooms (Baths). A
portion of the data is shown in the accompanying table. Use Table 2
and Table 4.

Price	Sqft	Beds	Baths
840000	2768	4	3.5
822000	2500	4	2.5
713000	2400	3	3
689000	2200	3	2.5
685000	2716	3	3.5
645000	2524	3	2
625000	2732	4	2.5
620000	2436	4	3.5
587500	2100	3	1.5
585000	1947	3	1.5
583000	2224	3	2.5
569000	3262	4	2
546000	1792	3	2
540000	1488	3	1.5
537000	2907	3	2.5
516000	1951	4	2
511000	1752	3	1.5
510000	1727	3	2
495000	1692	3	2
463000	1714	3	2
457000	1650	3	2
451000	1685	3	2
435000	1500	3	1.5
431700	1896	2	1.5
414000	1182	2	1.5
401500	1152	3	1
399000	1383	4	1
380000	1344	4	2
380000	1272	3	1
375900	2275	5	1
372000	1005	2	1
367500	1272	3	1
356500	1431	2	2
330000	1362	3	1
330000	1465	3	1
307500	850	1	1

a.	Estimate: Price = Î²₀ + Î²₁ Sqft + Î²₂ Beds + Î²₃ Baths + Îµ. (Round your answers to 2 decimal places.)

= + Sqft
+ Beds + Baths

b-1.

Choose the appropriate hypotheses to test whether the
explanatory variables are jointly significant in explaining
price.

	H₀: Î²₁ = Î²₂ = Î²₃ = 0; H_A: At least one Î²_j < 0
	H₀: Î²₁ = Î²₂ = Î²₃ = 0; H_A: At least one Î² _j > 0
	H₀: Î²₁ = Î²₂ = Î²₃ = 0; H_A: At least one Î² _j â‰ 0

b-2.

Find the value of the appropriate test statistic. (Round
your answer to 4 decimal places.)

Test statistic

b-3.

At the 5% significance level, what is the conclusion to the
test? Are the explanatory variables jointly significant in
explaining Price?

	Reject H₀; the explanatory variables are jointly significant in explaining Price.
	Reject H₀; the explanatory variables are not jointly significant in explaining Price.
	Do not reject H₀; the explanatory variables are jointly significant in explaining Price.
	Do not reject H₀; the explanatory variables are not jointly significant in explaining Price.